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S Corp

S Corp Deadlines For 2024: A Comprehensive Guide for Filing

June 4, 2024

Introduction

Welcome to the ultimate guide on S Corp deadlines for the year 2024 and beyond. As a business owner, understanding and meeting these deadlines is crucial for navigating the complexities of S Corp taxation.

Join me as we explore the key dates, requirements, and consequences associated with S Corp filings.

Electing S Corp Status: Understanding the March 15th Deadline

When considering S Corp status, the first deadline to be aware of is March 15th. This is the cutoff for electing to be taxed as an S Corp for the current year.

The process involves submitting Form 2553, which allows businesses to benefit from S Corp tax treatment.

Making the election by March 15th enables businesses to backdate their S Corp status to January 1st of the same year, potentially optimizing tax savings.

Missing this deadline doesn’t mean all is lost; businesses can still file Form 2553 with an explanation for the delay, but prompt action is crucial to minimize complications.

S Corp Tax Return Filing: Navigating the March 15th Deadline

For businesses already operating as S Corps, March 15th holds significance as the deadline for filing the S Corp tax return, Form 1120S.

This document provides essential financial information and generates K-1 forms for shareholders. While S Corps are pass-through entities, the 1120S serves a critical role in calculating the total profit of the business for accurate reporting on individual tax returns.

Filing the 1120S by March 15th can be challenging for some businesses, but tax extensions offer a solution, pushing the deadline to September 15th.

Consequences of Missing S Corp Deadlines: Penalties and Remedies

Missing S Corp deadlines can result in financial penalties. Failing to file Form 2553 on time may lead to additional scrutiny and potential penalties.

Similarly, late filing of Form 1120S can incur penalties of around $220 per shareholder per month. However, there are remedies available.

Providing explanations for delays and taking prompt action to file required documents can mitigate penalties. Additionally, utilizing tax extensions can provide relief and additional time to meet obligations.

Maximizing S Corp Compliance: Leveraging Resources and Tools

Navigating S Corp requirements can be daunting, but resources are available to assist business owners.

The S Corp Success Checklist, available for free, provides a comprehensive guide to S Corp compliance, ensuring businesses meet all necessary obligations.

In complex tax matters, seeking professional guidance can be invaluable.

Working with a knowledgeable CPA or tax advisor can help businesses navigate S Corp requirements, deadlines, and optimize tax strategies for maximum benefit.

Conclusion For This Tax Year:

Understanding and meeting S Corp deadlines is essential for business owners looking to optimize their tax strategies and avoid penalties.

By familiarizing yourself with key dates, requirements, and available resources, you can ensure compliance and maximize the benefits of your S Corp structure.

Whether you’re electing S Corp status or already operating as one, staying informed and proactive is key to success in navigating S Corp taxation.

Video Transcript

Please note that the following is a direct transcript and has not been edited for errors or omissions. It is a verbatim representation of the spoken words and may include colloquial language, grammatical errors, or other inconsistencies. We have chosen to provide the transcript in its raw form to preserve the authenticity of the conversation. We recommend cross-referencing with the original audio or video source for complete accuracy.

Hello. Hello everyone. Jamie Trull here, your favorite CPA and profit strategist. And today we’re gonna be talking a little bit about S Corp deadlines for 2024 and beyond.

This is probably not something that’s gonna be changing anytime soon. So let’s talk about what the various different deadlines that relate to S Corp that you need to be aware of.

Now, the deadlines that are important for you really depend on whether you’re already in S Corp or not.

S Corp Tax Deadline 2024

So first I’m gonna talk to those of you who aren’t in S Corp yet.

And then I’m gonna talk to those of you who are already S Corp and talk about those various different deadlines that relate to you.

For my friends who are thinking about becoming S Corp, think this might be the year for you. And you’re wondering what the deadline to be able to elect to be taxed as an S Corp for this current year is.

S Corp Tax Deadline Due Date falls on March 15

Well, the answer to that is March 15th. Okay? That is the election deadline to get your form 2 5, 5, 3. In order to be able to elect to be taxed as an S Corp. All right?

So that means that when you make that election, you’re gonna be able to be an S Corp back to January 1st of the year you’re making the election for. That’s typically going to be this year that you’re making the election.

Now, why is that deadline important? Well, again, that’s gonna be the easiest path to getting approved for your S Corp election. It can take several months to actually hear back. But most of the time people start treating themselves as S Corp immediately. Especially if you’re pretty sure you did everything correctly.

Tax Filing Decisions

So if you are watching this when it comes out, that is right around the corner. You probably wanna make a decision on whether S Corp is right for you as soon as you can.

If you’re in that spot and you’re trying to make this decision pretty quickly, I would definitely go jump over and grab the S Corp success checklist. It’s totally free.

JamieTrull.com/SCorpchecklist, and you can download that and really learn a little bit more about what it takes to be an S Corp, what the rules are, and help you make a decision on whether it’s right for you.

What happens if you miss tax deadlines?

Now, if you’re wondering what happens if you miss that deadline, well, I’m gonna talk about that at the end of this video.

So stick around.

Okay, so moving on to those of you who already have elected to be taxed as an S corporation. What are the deadlines that you need to follow?

Well, the most important one for you also just so happens to be the same March 15th. But for different reasons you’ve already made that election, but March 15th is still important for you because that’s when your S Corp tax return is due.

Annual Tax Return and Income Taxes Consideration

And that tax return is called an 1120 S. It is essentially a tax return just for your S corporation. And it is due a full month before your personal income tax.

Now, you might be wondering, wait a second, I thought S Corp were passed through entities. Why do I have another tax return? Don’t I just pay all my taxes on my personal tax return?

S Corporations and Income Tax Returns

And you would be right.

You do pay all of your taxes on your personal return, which is due April 15th.

But the reason that your S Corp tax return is due on March 15th is because when you do that, it’s gonna generate what your total profit in your business was.

And then if you are the only owner or if there are multiple owners, that process is going to generate your K one,which is essentially kind of like a W2 or a 10 99. It is your reportable income for personal purposes.

Okay?

So you have to do the corporate return first so that you know how much income you have to claim as profit from your business on your personal 1040.

That’s due April 15th. So that’s why it’s due a month in advance. You cannot file your 1040 without first having filed that 1120 s.

So definitely don’t skip that part. That’s one of the things that is different when you move. Maybe you were a sole proprietor or an LLC and you just filed a Schedule C along with your personal taxes.

Is there an extended due date for S corps?

When you become an S Corp, you get this fun extra tax return you get to do woohoo, yay. Now if you heard that and you’re looking at your watch and you’re like, there’s no way I’m gonna get this done by March 15th, I didn’t even realize I had to do that, right?

Don’t worry. It’s okay. You can actually make a free tax extension, okay? I have a video that walks you through exactly how to do it for $0, which is my favorite price, and you’ll be able to put your corporate return on extension until September 15th,

right? So that’s gonna be a full month before an extended 1040 would be due on October 15th.

The Importance of Due Dates

So that gives you lots of time. I actually tend to do that regardless. Even if I think I might be able to be done by March 15th, I go ahead and put myself on extension just so that if you know everything crazy happens and I completely forget about it,

I’m not gonna be caught paying a couple hundred dollars a month for months that I’m overdue on my return. That is my least favorite thing. I don’t like to pay the IRS penalties literally ever. So just make sure that you go on extension, even if you think you might do it by the deadline, still might as well just put it on an extension just in case you miss it.

Now, even if you are an S Corp, I do recommend still grabbing my S Corp success checklist because there may be things that you didn’t even realize were required that you need to do as an S Corp. So hit up Jamie Trull dot com slash S Corp checklist to go grab that for free for you. So now the big question, what happens if I miss those deadlines?

Oh, right. Is it the end of the world? No. In both cases, it is not the end of the world. So if you miss the deadline to elect S Corp, if you want to become an S Corp for the first time and you miss that filing deadline for your form 2 5, 5 3, it’s okay. It doesn’t mean you’re totally outta luck for the year,right?

Understanding Tax Payments and Estimated Tax Payments

Ultimately, you’re gonna have to provide some additional explanation on that form, but you can still technically file it. You just need to have some level of explanation for why you didn’t get that election form in on time and explain the fact that, hey, yes, I have been operating as if I’m an S Corp and therefore I should get this tax treatment back to January 1st of this year.

So that is definitely something that you can do. And what happens if that March 15th deadline comes and goes and you are an S Corp that hasn’t filed your 1120 s? Well, I would go ahead and get it filed first of all, but essentially you’re gonna have penalties of around $220 a month per shareholder. So if there are multiple share owners in this S Corp,

if it’s not just you, it’s gonna be $220 for each of them. Or if it is just you $220 a month for each month up to 12 months that you have not filed it. And that’s just for failure to file. So make sure to file it. We don’t wanna pay all those extra fees and charges, especially when you can easily just put a quick tax extension on that will get you until September to file that without any fees or penalties.

Hopefully this was helpful. Go check out my entire playlist on S Corp ’cause I have lots more information that’s super duper helpful for you, whether you’re trying to decide if it’s right for you, whether you’re trying to understand how it can save you on taxes, or maybe you are an S Corp and you just wanna make sure you’re doing everything the right way and you’re not paying it more in taxes than you need to.

I probably have a video for you. So go check it out. I will see you next time. Make sure to like and subscribe and make sure you grab that free checklist!

Should you file taxes as an S Corp? Our S corp toolbox will help you understand all you need to know about corporate taxes so that you can make the best, most informed decision for your small business.

Need help managing your S-corp? Our S-corp toolbox has what you need to feel confident with your paperwork!

I'm Jamie — Profit Strategist and Financial Literacy Coach.

tell me more...

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